CRUSH IT TODAY ... A DIFFERENT PERSPECTIVE

Recently, I find myself discussing the role and viability of ‘social media’ (formerly ‘Web 2.0’ now ‘social media’ next just ‘media’ and then possibly ‘media channels’) in a business context.  People ranging from realtors, attorneys, accountants, consumers, teenagers, and business owners all seem to weigh in with the sentiment that they recognize that the medium is here to stay; and that in the future it will ‘morph’ into something that has monetary value in business.  But with varying degrees of resistance most people seem to hesitate at the specific value or utility of the social media platform as a comprehensive business strategy.  The size and scope of the numbers of people on the various platforms suggest that many of us are enjoying the social outlet and the ability to connect with family and friends.  Others are quick to admonish people on the business value of these platforms.

Even those who are fully engaged in the social media platform seem hesitant on a viable strategy and implementation plan.  What is your strategy?  Are you resisting this platform, why?  Or, maybe you have recently decided to jump in with both feet on faith ... but you seem to be asking what now, and where am I going with this?  Well … maybe we all need to take a closer look and consider our overall strategy again!  So, I am providing a few perspectives from an individual who is actively building a comprehensive 'brand' and who has figured out how to monetize the social media platform.  Hopefully this will get your creative juices flowing and allow you to overcome any resistance you might currently have ... or not, that is totally up to you!!

Gary Vaynerchuk released his book entitled “Crush It” in September.  Currently, it is number two on the New York Best Seller List.  Gary is passionate about this platform and business in general.  His regular media content is viewable at http://tv.winelibrary.com.  This ‘media channel’ (oh, there is that term again) is a source of entertainment, inspiration and yes even strategic business development content.  I am providing a couple of clips below in hopes that you will be inspired to re-think your strategy regardless of where you are currently, and to broaden your perspective.  In the end if you broaden your perspective … then WE have succeeded.  Enjoy!!

This clip discusses how 'social media' is really at the heart of all business ... it is all about customer service.  Gary delivers a different perspective on the medium.  Don't just listen to the words, notice the presentation (the frame, presentation style, energy, 'stickiness' of his site and the ability for listeners to engage in a conversation with him).  He delivers content embedded in a platform of high energy, 'MTV' flash and a clean user interface that encourages a two-way conversation.  As far as monetizing his brand, well he has several multi-million dollar businesses and brands solely created from the 'social media' platform.  In addition, he has expanded the market penetration of his wine store from a couple million dollars a year in revenue to over 60 million in revenues and growing.  Success is tough to argue with ...

Who said you can't market your service in an airport!



Another interesting perspective is how Gary is promoting, in part, his book - http://crushitbook.com/crush-it-the-experience/.  I watched the three videos contained in this link and what struck me was the novelty of his promotional strategy.  I don't know about you, but I have never seen this type of strategy implemented via the Internet (yes, buy multiple copies get a free gift is not unique; but notice again the presentation of the offer and how it delivers what his audience wants, how they want it and when they want it - back to total customer service and creating 'Raving Fans').

So I will leave you with this final thought and video.  Maybe this will be your inspirational message of the day to overcome any resistance you are having with this Mojo ...

I hope you enjoyed the reflection, and take the time to consider how you will CRUSH IT today and in 2010.  Most importantly, I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know or visit us at http://www.coastalcommunityhomes.com.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys

RECOGNIZING WHAT TRULY MATTERS …

Over the past few weeks my Monday Morning Mojo has focused on the evolution occurring at Keller Williams Coastal Properties.  Questions posed have offered a reader the opportunity to reflect upon the potential message in context of their own business.  This week I am taking a more personal path; thus as I reflect upon a few defining success principles, hopefully, you will resonate with how certain data points are interrelated.

This week a friend shared a book with me entitled ‘The Go-Giver’ written by Bob Burg and John David Mann.  A national bestseller (so I might be the last person on the planet to read the book) that seems to crystallize the mojos of the past several weeks into ‘five laws of stratospheric success.’

Sharing these mojos with you is a personal journey.  Oftentimes, these incomplete tangents are threads that I need to resolve within to create the business, the life and journey that I desire for myself and those I love.  So between the paragraphs of the book, I reflected upon people who have crossed my path for the past five decades.  Hang in there with me for a few moments … developing business models, business plans, business strategies, marketing channels and service platforms are but fancy terms with no heart, unless we understand (beyond saying the words, but is all about ‘walking the talk’) the why behind everything they suggest.  The why reflects the soul of what we do by reflecting the heart that gives meaning to the experience of all those we touch.  The main points in the book are oddly well timed and relevant when considering my past several blogs – some might explain a bit of synchronicity is at work.  That is a topic for another time though!

In summary, Burg’s ‘five laws of stratospheric success’ are:

1.     The Law of Value:  “Your true worth is determined by how much more you give in value than you take in payment.”  The real question is what I do … does it really serve other people?  Does it add value to others?  In a world consisting of ‘what is in it for me’; and ‘what is mine is mine, and what is yours is mine’ speaks to contrary values.  If you listen closely you will hear this value at the core of what most businesses and individuals say.  Last week I had a meeting with a key service provider to Keller Williams.  The goal of the meeting in my mind was to discuss the concept of ‘strategic partnership’ and collaboration.  After nearly three hours I asked this rather dynamic person sitting across the table, how often do brokerage companies or realtors come to him from the place of true partnership?  His response was ‘never’.  Why?  Even with our meeting’s goal being collaboration, the participants struggled with this notion because the under current was still prevalent – ‘what’s in it for me or my company’?  

2.     The Law of Compensation:  “Your income is determined by how many people you serve and how well you serve them.”  Relishing the opportunity to “survive, save and serve” – and the greatest of these attributes is to ‘serve’ crystallizes the personal mantra that I must integrate into my spirit.  My compensation is directly proportional to how many lives I touch – ‘value’ merges with ‘impact’.  As I read these words, I thought of my father who toiled without a hint of resentment looking for simple ways to just be of service, to be a servant of those who crossed his path and to lighten the load of all.  This gracious gift was reflected by dozens of people at my dad’s funeral … a lesson I am only beginning to understand – thanks dad, maybe someday soon!  Be watchful … compensation is not restricted to only money … rewards of the soul are more meaningful and lasting than those wrapped in paper bearing a dead president’s picture. 

3.     The Law of Influence:  “Your influence is determined by how abundantly you place other people’s interests first.”  Contained in Keller Williams’ mission statement is the term “win-win or no deal.”  If you listen, negotiators, marketers and sales people often deliver this message; and for most this message resonates as being a worthy value.  Yet think about it … ‘win – win’ infers each person getting some fraction of a 50-50 deal that creates a winning compromise.  Is that demonstrative of real ‘value’ and beyond that this sentiment of ‘win-win’ is not unique – nay but a snappy catch phrase often over used and rarely understood.  The book summarizes (and I immediately connected with) “watch out for the other guy.  Watch out for his interests.  Watch his back.  Forget about fifty-fifty … it’s a losing proposition.  The only winning proposition is one hundred percent.  Make your win about the other person, go after what he wants.  Forget win-win – focus on the other person’s win.”  How many of us have that all backwards – mega companies have as their mantra delivering less than total satisfaction and have us believing that this is something special?  What would happen if we really created one hundred percent wins?  How about setting our sights on delivering what another person needs in total? 

4.     The Law of Authenticity:  “The most valuable gift you have to offer is yourself.”  In a world of commodity all we have to offer that is unique is ourselves.  Reaching our goals is about ten percent knowledge and technical skills, and ninety percent is about people skills.  At the core of people skills is who we are as individuals.  Ah, all that coaching and after billions of dollars spent on self improvement, and it really boils down to delivering an authentic and real you in service to others – delivering to other people what they want, when they want it, and how they want it.  A message packaged thousands of different ways, but each of us at our core already knows it.  How often and at what cost must I be reminded of that one simple reality – just be authentic while engaging with other people (for me – be ‘interested’ not ‘interesting’)? 

5.     The Law of Receptivity:  “The key to effective giving is to stay open to receiving.”  The yin and yang of life … we can’t give until we are open to receiving; and we can’t receive until we are open to serving others.  How often do I dismiss a compliment or a gift shared by another?  That is all about me and not the other person … in that moment I’m not open to receiving, and I cut off the other person’s opportunity to give or serve.  Ugh … I am so uncomfortable with accepting another person’s reflection that involves me.  I would much rather give than receive – so much easier!

So as I sat down to write this blog, I reminded myself that in articulating a new vision at Keller Williams Coastal Properties and while developing my own business plan for 2010 that really … I need to deliver a tangible service that embodies these principles at all times!  Sounds simple doesn’t it … well maybe it just might be … if I listen and remain open to other people’s journey and stories.  And you, how do you deliver a product or service that encapsulates these principles?  Or are you part of the majority who believes that this ‘mumbo jumbo’ has a place only around Christmas or in your family, AND not in business?  Most of us would agree, if we stopped for a moment; however, our language contradicts all or most of these principles, and most of all ‘our walk’ oftentimes is in conflict with these values.  Ah, now that is the rub … ‘how do I walk the talk’?

I hope you enjoyed the reflection, and take the time to consider how these questions may present opportunities for you today and in 2010.  Most importantly, I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know or visit us at http://www.coastalcommunityhomes.com.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys

IS IT THAT TIME OF YEAR … UGH … BUSINESS PLANNING …

So a group of realtors got together last week at Keller Williams Coastal Properties for a business development meeting.  Afterwards, the group gathered informally over pizza and wine to discuss other business related matters.  A friend asked each of us their production numbers to date for 2009; and if we had started developing our business plans for 2010.  One by one each person (with one exception) admitted that they had not started their 2010 planning.  Reluctantly I was one of those who acknowledged not having put any thought into next year’s business plan.  Ugh I shutter at the thought!!

The following day I was retelling the story to another peer who is putting together a budget for Keller Williams Coastal Properties for 2010.  I asked how she was going to do that without any input from the realtors regarding numbers and goals.  That got me thinking as to the real value of these budgets, business plans and goal setting exercises.  Logically I would think that a business would gather information from its sales and marketing arm, discount the projected sales numbers, and then develop the budget for the next year accordingly.  Yes, but that is when you run straight into the problems with the brokerage business model … the sales team consist of all independent contractors who typically don’t bother projecting sales goals or writing annual business plans (save those few or those in coaching; but even then it might just be a meaningless activity or another ‘homework assignment’).  So is there any value in these budgets and business plans?  Or are we just putting numbers together that makes us feel good or so we have completed a task that others say is important?  Is there a real value; and if so what is that value?  I wonder how many people after writing their business plans for the next year actually go back and read the plans on a regular basis (daily, weekly, monthly)?

How about you … have you written your 2010 business plan yet?  If not, are you resisting writing your plan?  Why?  You might even be asking yourself why do I even need to write a business plan every year?

Intellectually I understand that without a plan of action I basically have no ‘blue print’ for success in my business.  Beyond the notion of a blue print though the exercise of writing my business plan forces me to evaluate the market, identify my resources, determine my budget, and prioritize my efforts so that I don’t waiver with every shift in the winds.  If I truly go through the exercise, I can see the value of the plan given how this business (real estate) moves from one strategy to another depending upon what other people say is a trend.  So after some thought I am committing to write my plan over the next thirty days.  But saying I’m going to write my plan, albeit a good decision, involves me first identifying my resistance.  Part of my why?

So why do I resist writing my plan?  Well there are several reasons.  First, I resist structure on several levels.  I generally give considerable thought to where I’m headed and the implementation strategy to get to my goals.  However, when I write down my production goals it gives me this instant accountability barometer with little or no wiggle room.  Many people gravitate towards building accountability into their daily routine; however, I feel a sense of being trapped.  Finally, in the past when I have written my business plan I never seem to read it again (after its finalization) – therefore it takes on this air of being a senseless exercise.  In many ways it probably is why I never set New Years resolutions.  I almost take this attitude that writing a business plan is analogous to completing a ‘homework assignment’.  When I finish, then I’m done.  Well that thought process misses the mark – the business plan should be my individual road map that is a living and breathing document.  And, I should take it upon myself to review my plan daily, or at least weekly; and track my numbers each month.  Furthermore, I should make it a habit to revise my business plan every quarter – at that time I will need to re-access the market, my production and my plan accordingly. 

Okay, I have admitted the reasons for my resistance … furthermore, I will admit that my resistance really does amount to being total garbage!  So here I am exposing one of my achilles heels (one of many).  So now what?

Well I have three different, but similar, realtor business plan templates.  So that takes the mystery and mundane issues of development off the table.  And yes, I do understand the process for realtors beginning with the numbers – look at last year’s numbers and understand them.  Then begin with how much money one wants to make next year (GCI [‘gross commission income’] or in other business parlance gross income), and work backwards to determine how many transactions it will take to earn the GCI numbers.  Once you have the total number of transactions, then determine how many of each type of transactions (listings and buyers); how many days I plan on working; how many listings; the number of listing appointments it will take to close the number of listings required to reach your numbers; and finally how many calls it will take each day to reach my goals.  This process is fairly easy to understand; but really what does that get you … it seems like an analytical justification of how much money you want to make over the next year (oftentimes not based upon any reality but your own mental wish list).  So really what is the value in that exercise … well the heavy lifting is not in the numbers … but what the numbers suggest in combination to some additional factors.  Factors that few coaches and advisors really focus on (they give it little if any consideration when evaluating the plan).  Previous coaches spent all their time in the production numbers giving no consideration to the market trends, resources and business models. 

What would a few of these other factors be?  Whether you are in real estate or another business these factors are relevant.  Such factors as:

·      What is your business model?

·      What is the current market doing?

·      What are the market drivers for each micro-market you are selling into?

·      Where is each market headed over the next year for the services you are providing?

·      What are the agents of change that will cause each micro-market to expand or contract? 

·      What are the agents of change inherent in your business plan itself?

·      What resources do you need to be successful given each micro-market?

·      Evaluate the costs, market potential and whether these individual micro-markets or strategies fit your skill sets, your business model, goals and long-term business vision?

So going through the mere exercise of putting production numbers down (i.e., revenue, costs and number of transactions) may be of little value taken by its self.  But the process of developing the road map and understanding the playing field is the critical path that creates and sustains a world-class business.  So as John Wooden once said “failure to prepare is preparing to fail” is sage and timeless advice for all of us – even for me as reluctant as I am at times.

I hope you enjoyed the reflection, and take the time to consider how these questions may present opportunities for you today and in 2010.  Most importantly, I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know or visit us at http://www.coastalcommunityhomes.com.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys

THE EVOLUTION OF A ‘POD MODEL’ …

This week’s reflection is about a topic that is taking up a significant amount of my time lately.  I will try to make it generic enough to have a wider application, but no guarantees.  As with all of my blogs, the goal is to have you ask yourself how is this relevant in my life or in my business?

As you know Keller Williams Coastal Properties (“KWCP”) is currently recreating its Company model.  A new vision with several service platforms intended to improve the experience of all customers, including agents, buyers, sellers, employees, service providers and contractors. 

The question is how can you provide a level of services for your employees, partners and independent contractors so that you create a ‘raving fan’ outside the walls of the Company?  Within the independent contractor model this is challenging due to the relationship between agent and broker.  One of the drivers in the new vision for KWCP is the creation of ‘agent pods’.  The genesis behind this idea came indirectly from the book ‘Open Book Management’ by John Case read over twelve years ago.

The KWCP agent pod model is where the agents are organized into teams of 9-10 agents per pod with a total of 28 pods.  The pods will meet weekly for no longer than 90 minutes at a time.  The meetings will be structured to start with themes proposed for the first ten or so until rapport and understanding of the value and goals is clear with each member of the group.  Also, initial pod leaders will be trained as to the vision and goals prior to the first meeting.  There are three critical features to this pod model, we call them the KWCP 3Cs – coaching, collaboration and communication.  The pods are not intended to replace the agent business model, but to augment what the agent is doing and to bring a level of support and services not readily available within the traditional brokerage model. 

So what will these pods look like at Keller Williams or for that matter your organization?  Once each pod overcomes the inherent distrust within the ‘old’ economic model through the sharing of stories there will be several potential benefits for the agent participants.  The first is peer-to-peer coaching (mentoring).  The goal here is to enable vested relationships to form that provide support, experiential guidance, peer mentoring, opportunities for role play, practicing of scripts, mastermind opportunities, and brainstorming about business development, sales and marketing.  Keller Williams does a great job providing formal classroom training and training materials from Keller Williams International.  But for several reasons this training becomes diluted at the field level – timing, relevancy, apathy, schedules, lack of quality teachers, etc.  What is that saying … “experience is the best teacher” … well multiple that by nine and you now have a unique out of class room opportunity for growth and learning. 

This peer-to-peer coaching also has several ancillary benefits.  For example, a few agents drain the Company’s resources dealing with reoccurring questions and issues that come up throughout the marketing and sales transaction that could easily and quickly be disposed of at the pod level.  This will free up the Company resources to concentrate on other revenue generating and support functions.  This will also reduce the disenfranchised feel within the organization – a few agents feel left out because they don’t get the attention, recognition and assistance they require to move forward in their business.  Either they find another source for help or they end up dissatisfied, and eventually leave the Company.  Unfortunately, they don’t typically leave with a good experience and create a negative energy surrounding the Company – the opposite of a ‘raving fan’.

The second feature of the 3Cs is collaboration – the golden egg that has the most significant upside potential (it can also be a train wreck if not managed properly).  Agents typically are ‘lone wolfs’ that are highly territorial with their piece of the pie (agents believe they own or have ‘cornered’ certain market information or contact data).  This mindset gets in the way of true collaboration.  The goal is to have people come together within the pods and look for ways to joint market, collaborate in certain niche markets or micro-markets, share networking opportunities, etc.  By working together agents can reduce their expenses while potentially gaining access to markets they may not have under normal conditions.  Yes, at some level a ‘sharing of the revenue’ is appropriate and the questions involved with that boil down to ‘how do I know the effort extended by each person will be equal?’  The easy answer is you don’t … but the potential of exponential growth is worth the trial.  At the very least this collaboration model will enable a sharing of ideas and market information that will allow each participant to be a better realtor.

The third feature inherent within this pod model is communication.  The broker will be able to efficiently communicate ideas, policies, market trends and training ideas through the pod leaders.  The pods will be able to discuss information disseminated, as well as other information and data collected by the people ‘in the trenches’ everyday.  New ideas or repackaged ‘old’ concepts will bubble to the surface and fed back to the executive team and broker for consideration.  This feedback loop is healthy, nay critical, in any profitable organization.  Throughout this process the Company can determine its ‘holes’ or ‘blind spots’; and then fix them quickly by adapting to evolving markets and customer demands.  Beyond this sales and marketing information can be collected that has financial applications within the Company – i.e., unlike most traditional businesses bean counters can predict cash flow streams due to revenue projections of its sales staff; but in a brokerage model that practice is unreliable because there is no short, medium and long term look into the pipeline because the broker (if they are lucky) only sees or tracks what is in escrow.  There are a few software applications beginning to track more data points within the transaction pipeline from first contact, through list, to sales contract and closing (see KnewVantage).

I encourage you to look at your business model for potential applications.  These agent pods can be adapted to your business model whether it operates within your company or morphs outside involving a group of industry peers.

I hope you enjoyed the reflection, and let me know how you embrace change even through its uncertainty.  Most of all I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  Or if you or a friend is looking to buy or sell real estate anytime soon, please look us up at www.coastalcommunityhomes.com. 

As always, I welcome your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys

IS YOUR AGENT OF CHANGE ENOUGH …

When does the ‘agent of change’ exceed the ‘fear of change’ so that change is possible?  Change can be a scary proposition, and most of us delude ourselves into believing that we can control change, or that change is only necessary to avoid or recover from a catastrophic event.  Whether change involves a personal relationship, a job or in how we see ourselves; we seem to be driven not by what will bring us fulfillment, but avoidance of fear.  That seems to defy all logic – but then again does it?

Maslow’s ‘hierarchy of needs’ proposes an order of physiological needs that must be meet to bring about action.  Maslow’s model states fundamental, lower-order needs have to be satisfied in order to pursue higher-level motivators such as self-fulfillment.  However, we all have experienced a time when the uncertainty or fear of change prevented us or caused us to pause when action might be our best course.  At this point you might be asking yourself “who cares”?

Recently, Keller Williams Coastal Properties’ (“KWCP”) management and leadership counsel gathered for an all day business planning retreat.  The day was spent considering such topics as a mind-shift from a competitive model to a collaborative model (foreign concept for most real estate sales organizations); creating a raving-fan experience with all of our customers (defining who the customers are becomes a significant discussion within the realtor world); and finally a comprehensive vision that fundamentally alters the typical brokerage model.  A vision that will require the help of every agent, employee and service provider in order to accomplish – bringing a real estate company into Web 2.0 as a business model is difficult due to several inherent resistant points both within KWCP and the brokerage model.  Several technology pundits have stated that the realtor world is at least ten years behind other businesses as it relates to technology, innovation and business modeling.

But at the end of the day, the broker brought it home in a concise sentence – tomorrow how are we going to accomplish the Keller Williams International agent recruitment challenge of 24/8/4 (team leader in charge of agent recruitment is responsible for 24 new agent appointments, 8 new agent hires, with 4 agents leaving the company PER MONTH).  The vision discussed growing KWCP from 246 agents to over a 1,000 full time agents within two years.  Doing the math you will quickly conclude that the Keller Williams recruiting model is irrelevant in light of the new goal.  Here is the other rub – most brokerage companies look for the ‘low hanging fruit’ when recruiting (meaning hiring agents from other companies that are looking to move because they are unhappy with their current broker).  So picking up three or four new agents a month (or finding 48 per year) that are looking to move is difficult, but not impossible.  But finding approximately 42 new agents a month for the next 24 months (1,008 total agent hires, and then you need to allow for agent losses) is a whole different proposition!  This means Keller Williams will need to attract agents who right now have no desire to move or have not even thought about changing brokerage companies.

So this begs the question, will creating a ‘value proposition’ so overwhelming be sufficient to overcome the innate ‘fear of change’ to motivate those that maybe happy where they are to make a change anyways?  Logic would suggest that if the value of the brokerage services is so much better than their present reality, then of course … but most people typically don’t act solely out of logic (Logic vs Emotion).  When does the value of action or the ‘agent for change’ become so compelling as to overwhelm our fear of change or our ‘avoidance of pain’ (notion that people make decisions either to gain pleasure or avoid pain – which most often people choose to avoid pain rather than gain pleasure)?  To be honest, I’m not sure of the answer to these questions.  But the process will result in creating a company that is truly special because it will deliver a better customer experience in the end (admittedly a few other hurdles exist, i.e., under the present KW model how is one person going to identify, interview and hire 42 new agents per month?).

What do you think?  In any sales environment, we all come across people who understand the value of your product or service, and how it will significantly contribute to their life or business experience; but they don’t buy because of that ‘fear of change.’  How have you motivated these people to move beyond the fear?  How have you systemized your value proposition?

I encourage you to look at your personal situation and consider your business model.  Look at how a shift in your reality can significantly make a difference in yourself or in your business; and thus open doors to abundant opportunities.

I hope you enjoyed the reflection, and let me know how you embrace change even through the fear.  Most of all I hope you make it a GREAT day and week!!  If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com.  Or if you or a friend is looking to buy or sell real estate anytime soon, please look us up at www.coastalcommunityhomes.com. 

As always, I welcome your feedback and your reflections (please don’t hesitate to share your thoughts with me).  If I can be of service to you or your friends, please let me know.  And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!!  Jim Peys

A FEW THOUGHTS ABOUT VISION …

I was invited to give a vision presentation this month for the real estate brokerage company where I hang my broker’s license – Keller Williams Coastal Properties. Each year the management committee, ‘ALC’, gathers to develop the business plan for the upcoming year. The process is probably no different than every other corporation, enterprise, partnership or entrepreneur (or at least it should be) as they go through their annual planning right of passage. I thought it might be interesting to open up the process so these ideas are not discussed in a bubble – especially my bubble.

As a realtor presenting a Corporate vision to business owners seems counterintuitive to me. I believe our journeys are shaped not by the conclusions we draw, but the questions we ask that define our thought process and impact how we act. So standing in front of peers suggesting trends and opportunities in our marketplace seems a little odd. Oh well we’ll give it a go, consequently, I have been thinking about several questions that business professionals (regardless of the business, profession or its size) should ask within their organization. My other premise is that the development of vision and goals are an ongoing, living, dynamic process. Business planning is an evolving process that morphs as markets develop or evaporate, customer needs change, economic realities force new realties, and technology creates new platforms (or in some cases eliminates certain market opportunities).

My hope is that you will share your own questions and thoughts with me. I want your feedback because these thoughts are based only on my experiences, conversations with other professionals and consumers, and admittedly my own myopic research. Regardless of whether you are a consultant, sales person, entrepreneur, middle manager or executive in a large corporation the process of thinking through several of these questions will be worthwhile. So please join me in this process …

A Few Warm Up Questions & Considerations:

· What business are you in? In some cases the answer seems simple – realtors (I’m using realtors as my primary example because I am a realtor – sorry) are in the business of representing the needs of buyers and sellers in the acquisition or sales of real property. Is that it … or is our service more expansive than that? Case in point, some contend that if AOL (concluded they were a media company controlling content) asked and answered this question differently they could have been the equivalent of Facebook ten years ago. Or if Yahoo answered this question differently, then they would be the Google of today (instead they are struggling to survive). So what business are realtors in … the phase that keeps creeping into my consciousness is ‘a concierge platform providing a la carte real estate services and information.’ Operating in an open system the realtor can co-create the scope of services that is ultimately defined by the customer. Realtors are more than just order takers, negotiators, sales people, transaction coordinators, knowledge based companies; instead we can be a human ‘aggregator’ of services and connections that potentially eliminate the personal, business and legal bottlenecks that are inherent in the process and enable each touch point to be more fluid in delivering the desired results. Although a few individuals may currently view their role in this capacity; I would challenge this belief because they still demonstrate a degree of ‘fear based’ languaging tricks to motivate or control their clients and/or the process. The majority of realtors and brokers come from the competitive business model which is based upon fear and scarcity – listen to the ‘fine print’ in a listing presentation and you will instantly get the point.

· Who is your ‘customer’? Ah, this is where I will depart from traditional brokers’ assumptions. The typical broker views their clients as being the individual realtors (agents and associate brokers). This is a very limited view of the reality of the new economy. I define our ‘customer’ as every person that touches the entire transaction – agents/brokers, buyers, sellers, contractors, employees, independent contractors, assistants, service providers, transaction coordinators, escrow, title companies, lenders, etc. Each person that touches the transaction has the ability to drive the ultimate experience of the buyer and seller, and has the ability to drive future opportunities. If our view of ‘customer’ is expanded than we open ourselves up to creating ‘raving fans’ (see Ken Blanchard’s book Raving Fans) with every person along the way capable of fundamentally altering our business. Every time we take for granted a person involved in a transaction we potentially miss an opportunity to grow our business, develop another relationship, and enter into another ‘conversation’ that may lead to new opportunities through people.

· Where is your revenue? Traditionally for a real estate company or realtor revenue comes in the form of commissions. Consider for a moment if you were forced to assume a ‘zero-based budgeting’ model in your business; then how would you create revenue opportunities. A few business pundits use this term when Companies’ generate revenue through the ‘side-doors.’ For example, Google collects zero revenue (they actually give this service away for free) in its primary business – web based searches. Instead Google collects revenue primarily through advertising. Why should other ‘old line’ or established businesses consider ‘zero-based budgeting’ or assume collecting no revenue for a primary service or product (think newspapers, book publishing, travel agents, and the list continues to grow every day) – because the expansion of the Internet and the ‘new economy’ may threaten their ability to charge a fee or as large a fee as the business model evolves or matures.

So where does that leave realtors – one brokerage company in Seattle collects revenue as a ‘fee for services rendered’ similar to an attorney or CPA (hourly charge for time). I don’t think this model has legs over the long term. How about offering an a la carte menu for clients to pick from and pay a sum negotiated for each service selected. The realtor and broker could offer a comprehensive menu of services that is completely customer driven with fees associated with each menu item. For example, a seller could choose to list their property utilizing the full service option (the preferred option for all ‘full service’ realtors because the typical fee collected is between 2-6% of the transaction value), or they could choose to utilize only the MLS listing feature and the transaction coordination option. In a different situation maybe the client only wants to utilize the escrow services of the broker.

This paradigm shift offers several interesting twists to the traditional model. First, the client creates the level of service he/she wants from the ‘service platform’ – they in effect ‘co-create’ the service provided by the brokerage company. Secondly, this provides the client with real choices – the very essence of a menu. Next, the client gets to control, to a degree, the costs of a transaction (typically the sales costs of a transaction ranges between 7-9% of the sales price) depending upon the service items selected. Next the realtor has a competitive advantage over other brokerage companies or sales models – regardless of whether the client is considering a full brokerage company, discount broker or even the ‘For Sale By Owner’ option. In large part, this menu option will over the short term take ‘price’ off the table and shift the conversation to what level of service the client can expect from the broker/agent. Lastly, this menu approach offers an opportunity for greater ‘collaboration’ between realtor and client – which in the future may be how many realtors prosper (collaboration with everyone who touches the transaction – not just between realtor and client).

In addition, the realtor could provide a ‘cloud’ of services (term borrowed from the concept of ‘cloud computing’ – see the SalesForce.com model) that is scalable and configurable to the various market niches (notion of ‘mass of niches’ as detailed by Mark Penn in Micro Trends book) based on customer needs. As the realtor creates greater market penetration from its ‘platform of services’ into the various communities and vertical markets this access portal becomes a valuable resource for other service providers (title companies, marketing companies, insurance agents, contractors, financial planners, etc.). Through this service platform other companies will be able to collaborate with the realtor and pay for access to the community or database (either in the form of referral fees, advertising, joint marketing partnerships, etc.). This is just one idea for revenue opportunities from ‘side doors’ in the new economy.

So being Labor Day, I challenge you to examine your business’ vision/model. Thinking outside the box for a moment, the obvious answer to these questions may not insure that your model will succeed in the ‘new economy.’ So take these questions for a test drive, and see how you might add value to your customer’s experience, and how you can create ‘raving fans’ within your platform of services. Also, please remember that this blog is really an invitation for an ongoing conversation between us!

I hope you enjoyed the reflection, and take the time to consider how these questions present significant opportunity for each of us in the ‘new economy.’ Most of all I hope you make it a GREAT day and week!! If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com. As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me). If I can be of service to you or your friends, please let me know. And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!! Jim Peys

Other Questions To Consider:

There are several other questions that I have been bantering around in my head and with a few other friends; however, their detailed consideration, albeit important, deserves another forum. So for the sake of brevity, I only list the questions below to spur ongoing conversations with you. The following questions are in no way intended to be exhaustive for the purposes of your planning process; but they may be a starting point …

1. What is our business model? Are we a business model/corporation that is based upon competition (scarcity); or a model based upon the heart of collaboration/service (abundance – beyond the marketing or customer service rhetoric)?

2. How can we create a model that encourages and enables an on-going dialogue with all of our customers to co-create a ‘service platform’ that truly delivers real value to the customers and communities we serve?

3. Where is our ‘value proposition’ (some would ask “what is our value proposition”)? How is our ‘value proposition’ unique and add value to our customers?

4. What is our current Company culture? What do we want our Company culture to be?

5. How do we create ‘elegant organizations’?

6. How can we enable ‘elegant organization’ for each of our ‘customers’?

7. How do we enable on-going conversations with and between all of our customers so that we remove all informational bottlenecks and make all touch points more fluid?

8. What is our ‘platform of services’ that we offer so as to create value for all of our customers?

9. Where are the collaboration opportunities in every ‘service platform’ offered so that we may leverage all of our resources, talents and opportunities?

10. How can we cultivate the culture of collaboration and abundance across all business segments within and outside of the Company?

11. How can we collaborate with all of our ‘customers’ to co-create a more comprehensive ‘value proposition’ that truly serves the needs and desires of our customers and communities that we serve?

12. Where are our customers; what do they want; when do they want it; and how do they want it?

13. How do we really LISTEN to our customers?

14. What is our customers’ experience of the services we provide?

15. How can we create ‘raving fans’ across all business segments and with every ‘customer’ of the business?

16. How do we create and sustain total ‘transparency’ with all of our customers in every service platform in our business?

17. What communities do our customers participate in?

18. What communities and micro-markets do we serve?

19. How will we serve the needs of our customers and communities we serve in the ‘new economic’ model of today and beyond?

20. In the communities we serve do we, and if so how do we, enable them to talk; enable them to share what they know and need to know; enable them to support each other; enable them to do business together; and even enable them to socialize? (A friend once shared that true relationships develop when people have the courage to pray together, share a meal together, and laugh together – simple yet profound insight)

21. Are we being ‘authentic’ in all of our services and interactions with our customers? If not, why not?

22. How do we enable innovation within our Company and the business model?

23. What is the ‘legacy’ that we are creating for the Company and our customers?

24. How do we get ahead and stay ahead of the technology curve so that we truly serve our customers where they are at now and where they are headed in the future?

25. How does the technology that we utilize support the vision and direction of our customer driven service platform model? How can we create a seamless, synergistic technology platform that is user friendly, economical, functional and creates tangible value for all of our customers?

COLLABORATION … AN ELEGANT NEW ORDER WITH LEGS

Recently I crossed paths with a series of articles, books, blogs and business strategies that are causing me to explore the concept of ‘collaboration’ and the notion of “elegant organizations” across several businesses. Participating in an industry driven by competition there seems to be an ambitious allure regarding the potential for business development through the strategic utilization of ‘collaboration.’ This blog is by no means an exhaustive expose of ‘collaboration’ or its potential within your life; and thus I invite your comments and elaboration of its potential. Also, I admit from the inception that the topic or concept is not new; but that does not dilute its value. Regardless the model of ‘collaboration’ offers tremendous potential in the ‘new economy’ that is currently unfolding, and thus is worthy of our consideration.

By this time you are probably familiar with Facebook (everyone reading this blog is affected by members of the 250 million active Facebook users) and to a lesser degree stories about its founder, Mark Zuckerberg. One such story, or possibly myth, is that while Zuckerberg was at Harvard and working to create Facebook, he was unable to attend one of his art classes – allegedly he was unable to attend a single class the entire semester. When it came time for the final exam, Zuckerberg realized that he was going to flunk the class, unless he pulled a ‘rabbit out of his hat.’ So he emailed all his classmates a picture of the various artists discussed during the semester, with a blank text box below each artist’s picture. The tag line along with the email stated that Zuckerberg was organizing a study group for this class and was inviting each of them to participate. This invitation prompted his classmates to fill in each text box with the pertinent information about each artist. Zuckerberg shared all the responses in a series of follow-up emails. Each of the narrative responses were edited by the classmates, until consensus was reached on the pertinent information about each artist. The result was that Zuckerberg and each of the participants (classmates) had concise accurate information about each artist studied in class from which to study. The punch line as you might guess was that Zuckerberg ‘aced’ the exam and passed the class. But the real value was that afterwards, the professor acknowledged the class as a whole performed better on the final exam than any previous class for the same course. Ah, the true value of collaboration in a world that values competition (in an environment graded on a curve), this counter-intuitive model represents the clearest path to realizing each of our professional dreams.

Granted this story is duplicated on a small scale all the time - students gathering to share their class and study notes. That is at the heart of the model though – communities already exist everywhere, but our opportunity is how we organize and utilize these communities for the collective benefit of each of its participants. I challenge you to think beyond … look around you and open yourself to the potential of true collaboration that exists everywhere. I recently picked up a copy of BusinessWeek and the cover story is entitled “The Radical Future of R&D, It’s a New World of Collaboration Across Corporate and National Boundaries.” One of the featured articles (titled “Big Blue’s Global Lab”) describes how IBM (yes, Big Blue) is committed to its largest R&D venture. The basic premise is founded upon creating “radical collaboration partnerships with outside companies, countries, and industries as an essential part of its research” into new technologies that will form the basis of future products and services. You think they are alone … think again … Hewlett Packard, Proctor & Gamble, Eli Lilly, Microsoft, Google, and several other mega-corporations and governments are doing the same thing. Collaboration is all around us, borne from necessity, opportunity, and an array of other reasons that form the basis of a new economic reality (for a different perspective of this new reality – see this KPMG video).

So what does that mean for the small business owner, entrepreneur, or mid-level manager struggling for survival. Each moment is stretched by how to find the next dollar to pay the never-ending stream of bills (fixed overhead – the “atoms” of our effort). Jeff Jarvis suggests in his book “What Would Google Do” that “small is the new big”; and Chris Anderson recommends in his book titled “The Long Tail” to “get small but think big.” Get small … we are small, so now what? Financial, market, time, resource, operational limitations, egos, business visions, etc., provide just a few, albeit significant, road-blocks preventing serious consideration to how ‘collaboration’ could work in a tangible way. Well really … in these times … with the rate of technological and economic change can you afford NOT to consider this model? That is why this model is “counter-intuitive” because for every reason one could think not to consider collaboration and the creation of “elegant organizations” IS the very reason in support of its creation!

Ask yourself a few questions. What business are you in (may not be the obvious answer)? Is your business built on scarcity (basis of competition – if so, take heed the power of the internet is but around the corner), if so, ask how you might manage and exploit abundance? Where is your real value (what is your value proposition)? Who is your ‘customer’ (no really who is your ‘customer’ think expansively – think in terms of every ‘touch point’ in your process)? How do you uniquely serve or anticipate your customers’ needs? Look around you … what do you see? Look at the existing communities you serve. Consider the communities around you – how do you enable them to talk; enable them to share what they know or need to know; enable them to support each other; and enable them to do the ‘business of business’? How can you create a ‘platform’ of services (and or products) that invite your ‘customers’ to sit alongside you to design or co-create services that fit the space they are in at this moment (fill their need as they define it, not as you define their need to be – ah yes, there is the real resistance point – the old economic model is based upon ‘control’, fear, and hoarding)? I think you get the idea.

Ok, so you have asked yourself the questions and are comfortable with your answers … now what and why (I’ll leave the “how” to other blogs and business pundits). The easy answer to the “why” will vary for all of us. In a future blog with the help of a case study involving a networking group (Long Beach Business Professionals Association) and your feedback, I will explore the “why” and possibly the “how.”

The seed of opportunity for forward thinking individuals, networks, communities and companies is NOT one connection, one prospect/lead, one idea, or one deal (as promoted by your typical networks, communities, companies and lead generation groups, i.e., Tippers, LeTip, etc.); but in a collaborative effort involving all its members and all its ‘customers.’ The germination of a ‘community’s’ (defined broadly) potential is held within the notion of leveraging the ‘whole of its parts’ for the exclusive benefit of every person or entity that interacts with the group. I would challenge you to explore how to co-create a ‘service platform’ that enables respective ‘customers’ (defined broadly) to define how to use the service to get what they want, when they want, and for a price that is more competitive than what could be found outside the ‘platform’ (another concept gaining momentum in the blog world is “zero-based budgeting”). In this model, the aggregate whole is greater than the sum of its individual parts, without any prospect of losing each member’s individual identity or diluting individual brands.

The ‘platform’ will take on a dynamic life of its own allowing the group to LISTEN to everyone who ‘touches’ the ‘platform of services.’ As people contribute to the ‘platform’ as either members or customers it enlarges the database (data points) providing better market information and greater access to prospects, products, services and ultimately opportunity. A collaboration of services combined with valuable content that is constantly evolving will add value to the ‘platform’ resulting in greater opportunities for everyone.

The notion of collaboration is a methodology of organizing a community’s knowledge so that the existing community can better organize itself. Creating a network of sub-communities that reach deeper into a community will have more impact and add real value, and therefore offer an array of revenue opportunities along the way for its contributors. But to get there the ‘platform’ will need to “act small but think big”, and view the world with a different lens (from abundance instead of scarcity). Jarvis challenges us in “What Would Google Do” to “release all information bottlenecks and make all touch points more fluid. Stop trying to make money by interfering in transactions.” When I thought about these two statements it struck me as counter-intuitive to conventional business models – old line businesses are structured to create bottlenecks, and then to take financial advantage – i.e., make a transaction more complicated so that you can be the ‘expert’ that clarifies the mess. A model based upon competition and scarcity allows the Internet to shed a different perspective upon it by encouraging collaboration and abundance – and there IS both the flaw (existing models) and the opportunity (for a new model).

We need to ask ourselves what is the world we wish to create and participate in? Personally, the old business model (based upon fear of scarcity) holds no allure for me; and the new order’s call for change is scary being an outsider looking in, but leaves me little choice. So as a dear friend emphatically encouraged me on my trip back East … “just engage, just get in the game Jim.”

I hope you enjoyed the reflection, and take the time to consider how these questions and evolving business models present significant opportunity for each of us. Most of all I hope you make it a GREAT day and week!! If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com. As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me). If I can be of service to you or your friends, please let me know. And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!! Jim Peys